Inflation in Iceland Drops to 4.8 Percent Skip to content

Inflation in Iceland Drops to 4.8 Percent

The consumer price index (CPI) is 361.7 points judging by pricing in July, down by 0.66 percent since June. The annual inflation is thus 4.8 percent and hasn’t decreased more rapidly between months since March 1986, according to Statistics Iceland.

Photo by Páll Stefánsson.

The CPI excluding housing is 343.6 points, down by 0.78 percent since June, reports.

Summer sales are in full swing and the price of clothing and shoes dropped by approximately 10.3 percent.

In the past 12 months the CPI has increased by 4.8 percent but the CPI excluding housing by 6.1 percent. In the past three months the CPI has dropped by 0.6 percent, which equals a 2.3 percent deflation per year (a 3.8 percent deflation for the CPI excluding housing).

According to calculations in July 2010, a CPI of 361.7 points will be used for indexation in September this year. The CPI for older financial commitments, which change according to the credit terms index, is 7,142 for September 2010.

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